Paul Robinson's filing status is married filing jointly, and he has earned gross pay of $2,800. Each period he makes a 403(b) contribution of 6% of gross pay. His current year taxable earnings for Medicare tax, to date, are $281,000. Medicare Tax=

Paul Robinson's filing status is married filing jointly, and he has earned gross pay of $2,800. Each period he makes a 403(b) contribution of 6% of gross pay. His current year taxable earnings for Medicare tax, to date, are $281,000. Medicare Tax=

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Susan is single and had the following tax information for the current tax year: Pension income: $58,800 Social Security benefit: 18,700 Tax-exempt interest: 3,750 How much of her SSB must Susan include in her taxable income? (Round answer to O decimal places, e.g. 5,125.) Taxable SSBs $
Caleb Griffin's filing status is married filing jointly, and he has earned gross pay of $3,100. Each period he makes a 401(k) contribution of 7% of gross pay. His current year taxable earnings for Medicare tax, to date, are $198,400. Total Medicare Tax = $ 44.95
Clarke, age 39, and Jessica, age 50, are married with two dependent children. They file a joint return for 2020. Their income from salaries totals $105,000; they receive $2,000 in taxable interest and $2,000 in royalties. Their deductions for adjusted gross income amount to $5,100; they have itemized deductions totalling $40,000. Calculate the following amounts: a. Gross income b. Adjusted gross income c. Itemized deduction or standard deduction amount d. Deduction for exemptions e. Taxable income f. Regular income tax liability from rate schedule
Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer’s base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Eric is retiring this year at age 67. The following table shows his data. Part-time salary $30,500 Annual savings account interest $300 Annual dividends $2,750 Annual interest on Dallas municipal bonds $1,550 Based on the income calculated, Eric will have % of his Social Security benefits taxed.
Grady received $9,040 of Social Security benefits this year. Grady also reported salary and interest Income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Note: Leave no answer blank. Enter zero if applicable. Required: a. Grady files single and reports salary of $14,200 and interest income of $460. b. Grady files single and reports salary of $24,310 and interest income of $810. c. Grady files married joint and reports salary of $79,200 and interest income of $710. d. Grady files married joint and reports salary of $44,000 and interest income of $910. e. Grady files married separate and reports salary of $24,310 and interest income of $810. Complete this question by entering your answers in the tabs below. Required A Required C Required D Required E Grady files single and reports salary of $14,200 and interest income of $460. Amount to be included in gross income 19,180 Required B $ Hepaired A Required B >
Paige had $100,000 of income from wages and $3,650 of taxable interest. Paige also made contributions of $2,300 to a tax-deferred retirement account. Paige has 4 dependents and files as head of household.What is Paige's total income?What is Paige's adjusted gross income?For Paige's filing status, the standard deduction is $18,000. What is Paige's taxable income?
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $75,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? PLEASE DO NOT RESPOND WITH a) 30,600 and b) 25,050 IS NOT CORRECT!!!!!! IT IS INCORRECT.
tes Ms. Ray is age 46 and single. This year, Mr. Ray's retirement savings included a $2,630 employer contribution to a qualified profit- sharing plan account, and a contribution by Ms. Ray to a traditional IRA. Mr. Ray contributed the maximum allowed. Required: a. Compute Ms. Ray's IRA deduction if current year income includes $46,100 salary. b. Compute Ms. Ray's IRA deduction if current year income includes $71,260 salary. c. Compute Ms. Ray's IRA deduction if current year income includes $71,260 salary and $7,290 dividend income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Ms. Ray's IRA deduction if current year income includes $71,260 salary. Note: Do not round phase-out percentage. Round other intermediate values to the nearest whole dollar amount. IRA deduction $ 3,000
Malcolm and Megan Johnson are both over age 65, married and are filing a joint tax return for 2020. The joint Social Security is 644-47-7833. The couple has AGI of $ 28,108 for 2020 and provided the following information all which can be verified for 2020: Medical related expenses: Medical insurance premiums $ 1,200 Premiums in insurance policy that pays $100 per day for each day that Megan is hospitalized 400 Medical care and lodging 80 Hospital bills 2,200 Doctor bills 750 Dentist bills 240 Prescription drugs and medicines 360 Over-the-counter medicines 510 Marriage counseling 400 The couple drove 90 miles for medial transportation and their insurance reimbursed them $850 for the above expenses. Taxes related expenses: Megan’s employer withheld State income tax $ 3,400 Megan paid additional state income tax for 2019 600 Real estate taxes on home 2,100 Personal property taxes based on home value 130 State gasoline taxes 80 General sales tax for the year 1,200 Federal income taxes…
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